Nonprofit Financial Basics

Webinar 4 – Nonprofit Financial Basics
GTCC Small Business Center
Greensboro, NC
June 9, 2020© STC Consulting, LLC 2019
www.stcconsultingllc.org
NONPROFIT DEVELOPMENT SERIES

WELCOME
Before we get started…
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• Use the chat box to ask questions
• Place phone/device on Mute to block background noises
• Do not put your phone on “hold” during the webinar
• Be respectful to the presenter & attendees
© STC Consulting, LLC 2020 www.stcconsultingllc.org

ABOUT STC CONSULTING, LLC
Nonprofit Consulting Services
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• We are a team of business consultants with expertise in:
o Nonprofit Startup
o Nonprofit Formation
o Board Training
o Technology Support
• Services are delivered in person and/or using technology:
o individualized coaching/mentoring
o group trainings
o workshops
o public speaking
o seminars

YOUR PRESENTERS
Dr. Kathryn Addo & Mrs. Samantha Marius-Dillingham
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Samantha Marius Dillingham
Director of Financial Growth &
Profitability
• Financial Analysis &
Planning
• Mid-Level Accounting
• New Business &
Training Services
• Bookkeeping
• Training/Coaching
• Non-Profit
Formation
• Nonprofit
Governance
• Board Development
& Training
• Nonprofit
Development
Planning
Dr. Kathryn Addo
Nonprofit Consultant
President

SERVING OUR COMMUNITY
“Community Inspirations with Dr. K”
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“Information that inspires &
music that soothes the soul!
The weekly 30-minute program promotes
philanthropy & nonprofits as forms of
community engagement & empowerment.
FRIDAYS @ 10:00 AM
www.WDRBmedia.com
www.iHeart.com
24/7 on www.soundcloud.com

NONPROFIT RESOURCES
Community Nonprofit Business Supports
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NONPROFIT EDUCATION
GTCC Nonprofit Development Series – March & June 2020
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3/3/20 Nonprofit Organization Formation
3/10/20 Developing Nonprofit Programs
6/2/20 Improving Nonprofit Impact Through Technology
6/9/20 Nonprofit Financial Basics
The Nonprofit Development Series is developed by STCC
Consulting, LLC & co-sponsored by the Small Business
Center at GTCC and the Greensboro Public Library.

NONPROFIT PROGRAMS & COUNSELING
GTCC Small Business Center
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The GTCC Small Business Center (SBC) is part of the statewide Small
Business Center Network (SBCN), a community college-funded
initiative with a vision to foster and support entrepreneurship, small
business, and economic development in local communities with an
emphasis on assisting start-ups, early stage, and at-risk enterprises.
Our goal is to increase the number of viable businesses across the
state by providing high quality, accessible assistance to small business
owners, leading to job creation and retention. We do this through free
programs/seminars and confidential counseling.
In Greensboro, the SBC is located in the Nussbaum Center for
Entrepreneurship, Suite 1201, located at 1451 S. Elm Eugene Street.
The SBC also has an office in the High Point Chamber of Commerce,
where counseling is available.

LIBRARY RESOURCES FOR YOUR
NONPROFIT!
• We are a Foundation Information Network Partner- we provide
specialized access and knowledge to a suite of resources and
solutions provided by Candid.
• Free access to Foundation Directory Online, a premiere funding
research tool for nonprofits.
• Special collections of print and virtual materials for nonprofits-
topics include starting a nonprofit, board governance, grant
writing, and more.
• Free access to specialized databases that can help with
research for your nonprofit, including demographic and issue
research.
• Dedicated Librarian to help you learn about resources for your
nonprofit.
QUESTIONS?CONTACT ME!
Morgan Ritchie-Baum
Business & Nonprofit Librarian
E: morgan.ritchiebaum@greensboro-nc.gov
P: 336-373-4559
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LET’S GET STARTED!
You will learn about…
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1. The stages of Nonprofit Growth & Development
2. Board Fiduciary Duties
3. The Financially Healthy Nonprofit, and
4. Nonprofit Budgeting Review
Disclaimer: This presentation is provided for educational
and informational purposes only and should not be
construed as legal advice or as an offer to perform legal
services on any subject matter.

NONPROFIT GROWTH & DEVELOPMENT
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BOARD OF DIRECTORS’ FIDUCIARY DUTIES
3 Legal Duties
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• A fiduciary acts on the behalf of another based on an expectation of trust.
• The Board of Directors is required to follow 3 legal duties as they provide administrative & financial
management for the nonprofit.
Duty of Care: A board member must exercise reasonable care when
making a decision as a steward of the nonprofit.
• Attend meetings
• Be informed
• Rely on trustworthy information
• Exercise independent, sound judgment
• Monitor nonprofit activities

BOARD OF DIRECTOR’S FIDUCIARY DUTIES
3 Legal Duties, cont’d
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Duty of Loyalty: A board member can never use
information obtained as a member for personal gain. S/he
must act in the best interests of the organization.
• Avoid self-dealing transactions
• Decline corporate opportunities for the nonprofit
• All confidential information belongs to the nonprofit
Duty of Obedience: A board member must be faithful to
the organization's mission and must act in a way that is
consistent with the central goals of the organization.
• Obeys applicable laws & regulations
• Follows its own bylaws
• Makes Mission-focused decisions

5-MINUTE COMFORT BREAK – Q&A
Got Questions?
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THE FINANCIALLY HEALTHY NONPROFIT
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Governance:
Policies &
Procedures
Planning:
Budgeting &
Projections
Operations:
Recordkeeping
Monitoring:
Evaluations
& Analysis
$$$

IMPLEMENTING POLICIES & PROCEDURES
Establishing Accountability is a Priority!
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• Board members must understand their roles and
responsibilities in financial matters
• Board of directors and management must hold
themselves responsible for long-term stability in both
programs and financial performance
• Policies must be established for major financial
decisions and adequate and appropriate internal
controls
• Board member officers, responsibilities, and policies
should be included in the nonprofit bylaws

THE BOARD TREASURER ROLE
Responsible for Operations, Oversight & Strategy
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• Attends all Board meetings
• Maintains knowledge of the Nonprofit & personal commitment to its
goals and objectives
• Understands financial accounting for Nonprofits
• Serves as Chairperson of the Finance Committee
• Manages the Finance Committee, the Board’s review & action related to
the Board’s financial responsibilities
• Ensures that appropriate financial reports are made available to the Board
in a timely manner
• Presents the annual budget for Board approval
• Reviews the annual audit and answers Board questions about it

FINANCIAL ACCOUNTABILITY POLICIES
How the Money is Managed
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• Establish Treasurer and Financial Committee Responsibilities
• Establish Policies regarding
o Financial Accounts Setup
o Check Signing
o Deposits
o Credit/Debit Cards
o Apps and Online Payment Accounts
o Contracts and Loans
• Consider hiring skilled personnel, providing training or outsourcing some services
• Establish Tracking System and Documentation of Financial Activities,

5-MINUTE COMFORT BREAK – Q&A
Please return promptly!
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BUDGETING AND REPORTING
The Operating Budget
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• The Budget numerically expresses the Nonprofit’s dreams in
the Mission statement
• It is based on reliable income and expense projections (well-
researched)
• Budgets are prepared in tandem with planning for programs
and operating needs
• The most reliable budgets yielding the best fiscal results for
the organization are conservative and income based
• Planners ensure expenses are lower than the dependable
income total

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SAMPLE
NONPROFIT
BUDGET

2 TYPES OF NONPROFIT FINANCIAL REPORTS
The Income Statement & Balance Sheet
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This statement quantifies the revenues
and expenses of a nonprofit for a
reporting period.
Program Management Expenses
Fundraising & Events Expenses
General Expenses
This statement reflects the overall
picture of a nonprofit at a given
moment in time. It also shows the
accumulated results of all the
preceding years of operating.
Reflects Financial Stability
Used to explain cash flow and
balances
Statement of Financial Position
(aka Balance Sheet )
Statement of Financial Activities
(aka Income Statement)

STRATEGIC PLANNING & ACTION
Evaluate…Adjust…Implement
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• Monitor progress of programs and services and cash flow
• Modify programs and activities in response to variances
• Manage with a goal of operating surplus each year.
• Regularly review short-term and long-term plans and develop
develop goals and strategies for the future

CREATING SUSTAINABILITY, ACTIVITY & VISIBILITY
In Full Bloom
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• Financial Responsibility
• Integrity
• Transparency
• Accountability
• Financial Management Self-Assessment

Contact Us!
STC Consulting, LLC
Greensboro, NC 27410
(336) 252-4891
(704) 315-8459
www.stcconsultingllc.org
Follow Us!
Facebook: STCConsultingLLC
Instagram: stcconsultingllc
LinkedIn: stcconsultingllc
Twitter: stconsultingllc
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Nonprofit Financial Basics

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